Subject: Who taxed Social Security?

Unknown | 7-31-03

[SheLion]

Subject: Who taxed Social Security?

Since many of us have paid into FICA for years and are now receiving a Social Security check every month - and then finding that we are getting taxed on 85% of the money we paid to the federal government to "put away," you may be interested in the following:

Q: Which party took Social Security from an independent fund and put it in the general fund so that Congress could spend it?
A: It was Lyndon Johnson and the Democratic-controlled House and Senate.

Q: Which party put a tax on Social Security?
A: The Democratic party.

Q: Which party increased the tax on Social Security?
A: The Democratic Party with Al Gore casting the deciding vote.

Q: Which party decided to give money to immigrants?
A: That's right, immigrants moved into this country and at 65 got SSI Social Security. The Democratic Party gave that to them although they never paid a dime into it.

Then, after doing all this, the Democrats turn around and tell you the Republicans want to take your Social Security. And the worst part about it is, people believe it!

[SheLion]

I recieved this information from someone wishing to remain unknown. I'm sure most of our informed in Free Republic is quite aware of the above information.

But for those who aren't, I find it a very interesting read.

[Aria]

"If you repeat a lie often enough......"

Thanks for this, I'm going to send it around.

[NetValue]

Shout it from the rooftops!

I remember when Barry Goldwater tried to stop it from happening and the democrats smeared him - he was a man of honor.

[staytrue]

I think it was Reagan plus democrat congress who put the tax on.

[JohnGalt]

Social security benefits are on average, used up within 19 months from the first check. After that, a Social Security check is a welfare payment. Its still a pretty good deal for the elders so I have a tough time sweating the minutiae.

Abolish the entire system, issue bonds for what is owed to each American.

[Aria]

BTW, what about the drug addicts and other "disabled". Don't they get some of our money too? Why people who don't pay in get anything is criminal. The nerve of the democrats to confiscate the money from hard working Americans (who need the S/S the most) and hand it out for political favors.

[BellStar]

btt

[staytrue]

After that, a Social Security check is a welfare payment.

Actually it is a system that works wonders for 1 generation or unless there is a population increase. Basically, in stage one, people pay in and people who have never paid in get a check. That works wonders for 1 generation. It is the ultimate free lunch. After that, you have people who pay in and expect something back. Total failure occurs in "the last generation" which would be if no more kids were born or in the case of a population decrease where there would be recipients but no payers.

The popularity of social security is the for the last 50 years, the 1st timers got a wonderful deal and the population has doubled too so that the 2nd timers are ok too.

The end of the good deal is coming as I don't think we can double our population again.

This is also why the increase in the national debt has not been a problem yet. A person can borrow, but must eventually pay back the principle by the time he dies. Since a country never dies, it never has to pay back, but only must pay interest. This is another case of the good deal working once.

[KarlInOhio]

The intent of social security was never to "put away" money for the individuals who paid in. It is not a personal retirement account.

You get into the "intent" vs "way it was sold" argument.

You're right, it was intended to be welfare for the old and a way to convince them to quit working to allow younger people jobs during the depression. It was sold as an "insurance" program (that's the I in FICA) which people got back what they put in.

Some of the "insurance" aspects are only getting money if you paid in for a minimum amount of time and having benefits at least loosely based on what you put in (although no where near proportional to the amount paid in). If it was seen as a welfare program, it would not have become the third rail of American politics.

[JohnGalt]

The Greatest Generation was a sham. The Robber Barrons offered a much better deal than the current phony tax regime in DC.

[HEY4QDEMS]

Q: Which party took Social Security from an independent fund and put it in the general fund so that Congress could spend it?
A: It was Lyndon Johnson and the Democratic-controlled House and Senate.

This was the brainstorm of the Johnson admin to fund the Space program without raising taxes, sadly a large amount of Americans supported this plan as beating the Russians to the moon was a matter of life and death.
It was supposed to be a "temporary" conversion of the fund.

As always, the legislative definition of "temporary" is not the same as the literal definition.

[Bob]

This is interesting. It does need some research to flesh it out with specific bills and dates to have any real impact though.

[19th LA Inf]

The formula for calculating the taxable share of social security payments is so complex that I suspect many retirees don't realize just how it works. Essentially, for a couple with a bit over $40,000 combined income, including SS, every additional dollar of income looks like $1.85 to the IRS, meaning that they are really in a 28% bracket rather than the 15% bracket the tax table leads them to think. Past age 70.5, part of the minimum required withdrawal from an IRA account is likely to be taxed at a 28% rate, about the same as the tax "avoided" by putting the money in originally, except that the couple's income base is now much smaller.

This came about through the Clinton-Gore 1993 tax bill which was supposed to increase taxes for only the wealthiest 2% of the population as I recall, and was passed with Gore's deciding vote.

Thanks, Al!

[anoldafvet]

A couple of more facts:

Democrats raised the retirement age from 65 to 67 years.

Clinton raised taxes on Social Security imcome (85%) of benefit is taxable.

The COMBINED Social Security & Medicare tax used to be 7.65%. The RATS split out the Medicare portion (2.9%) and kept the the Social Security rate at 7.65%, which effectively increased our FICA by 2.9%.

When FDR started Social Security, he never intended to pay any benefits since the retirement age was 65 and the average male only lived to be 59.

[dalereed]

It's a ponzi scheme and if a private company tried it they would be in prison!

Myself, now collecting, quit paying into it in 1978 when I started taking all my compensation from the corporation in rental and lease payments instead of taking a salary. I get a slightly reduced check but not by much since I paid the maximum for over 20 years starting at age 14.

[jackbill]

Q: Which party put a tax on Social Security?

A: The Democratic party.

Taxing 50% of Social Security benefits was instituted during the Reagan administration. Reagan signed off on it.

Q: Which party decided to give money to immigrants?

A: That's right, immigrants moved into this country and at 65 got SSI Social Security. The Democratic Party gave that to them although they never paid a dime into it.

SSI does not come out of Social Security funds. SSI payments come from general revenue. The Social Security Administration administers it but doesn't pay for it.

This is about the millionth time that I've seen this list. It's tired.

[ItsOurTimeNow]

Archiving for later use!

[KarlInOhio]

Nope. Still a combined 7.65%. The cap on income subject to the Medicare tax was abolished. You stop paying 6.2% after you hit approx $85,000. You keep on paying 1.45% on any amount. Of course you have to double the percentages to count the amount you employer has to pay.

[poet]

The slime clinton and his dem rubber stamps did it 1993. If memory serves, it passed by one vote and the broad who cast the deciding vote was not re-elected.